Back: Cast on 100 sts and with No. 1 needles knit in ribbing of k 3, p 2, for 4 inches. Change to No. 2 needles and knit 1 row on p 3, k 2 side of ribbing, increasing 1 st in the 3rd and then every 5th st across (120 sts on needle). Work in stockinette until work measures 9 inches from ribbing. For armhole, bind off 7 sts at beginning of each of next 2 rows, then decrease 1 st at each end on each of next 3 knitted rows. Work even until piece measures 5½ inches from armhole. Bind off 8 sts at beginning of each of next 8 rows, then bind off remaining sts for neck.

Front: Cast on 102 sts and work in ribbing as in back, making same increases on p 3, k 2 side (122 sts). Change to No. 2 needles and work in stockinette for 3 inches from ribbing, then start pattern. 1st row: K 38, * k 2 together, thread over, slip 1 st, k 1, pass slip st over k st (hereafter this will be referred to as (sl, k and pass), k 10. Repeat from * 3 more times, knitting 38 instead of 10 the last time. 2nd and all even rows: P across, counting the thread overs as sts.

Continue working in design from 1st row until the 13th row of 3rd group of diamonds. Then bind off for armhole as in back and finish that group of diamonds. (10 sts have been decreased from each side). Next row: K 28, * k 2 together, thread over, sl, k and pass, k 10. Repeat from * once, but k 5 instead of 10. Turn. Continue working in pattern over these 2 diamonds only, for left upper front, until beginning of 12th row of 5th group of diamonds. Decrease 1 st at beginning of this p row, and 1 st every row at neck edge for 9 rows. To make decrease in pattern row, omit the last thread over. Continue decreasing at neck edge when the diamond is finished, bind off 8 sts at a time at shoulder edge, working these last few rows in plain stockinette. Work right upper front to correspond.

Collar: Cast on 110 sts, and with No. 2 needles work 6 rows in stockinette, increasing 1 st at beginning of every row, making increases in 2nd st. Continue the increase at beginning of every row, and on next k row, start diamond pattern. K 10, k 2 together, thread over, sl, k and pass, k across to within 14 sts of other end, then k 2 together, thread over, sl, k and pass, k remaining sts. When one pattern is finished, work 2 more rows in plain stockinette and bind off loosely. With the crochet hook, attach thread at neck edge, ch 5, * skip 1 st, d c in next, ch 2. Repeat from * around 3 sides of collar, working 2 d c at corners. Then work 1 row of s c to finish.

Tie Cord: Ch 3, 4 s c in 2nd ch, 1 s c in 1st s c, taking back loop of st only. Continue working around and around until cord measures 12 inches. Make 2 of these cords and sew to neck edge as in illustration.

Sleeve: Cast on 50 sts and with No. 1 needles knit in ribbing for 2½ inches. Change to No. 2 needles, k 1 row, increasing 1 st in 6th and every 10th st (55 sts). Start stockinette on side of k 3, p 2, in order to have right side of ribbing turned up for cuff. Work 18 rows. Next row, and every 12th, increase 1st at both ends for 6 times (67 sts), then every 8th row for 8 times (83 sts). Work until piece measures 18 inches from cuff. Bind off 5 sts on next 2 rows, then decrease 1 st beginning every row until 47 sts are on needle. Then decrease 1 st both ends every row until 19 sts are left. Bind off. Sew up sleeve and underarm seams and sew sleeves to blouse.